2023 (10) TMI 746 - AT - Service Tax

Refund of service tax - transportation of goods by rail - Transportation of goods by road - CHA Services - Terminal Handling Service. Transportation of goods by rail - HELD THAT - The appellant has only engaged M/s KNL who was further allowed to avail the services of CHA and other service providers for export of goods from the factory of the appellant to the final destination of the goods in the foreign country - It is also a fact that M/s KNL availed the services of other parties in order to effect the export of goods. CHA Services - HELD THAT - The appellant had produced that the CHA M/s Sunrise Freight and Forwarders Private Limited has provided a certificate that they had provided the service of customs clearances and related works to the clients of M/s KNL and even M/s KNL had given a certificate that M/s Sunrise Freight and Forwarders Private Limited had provided the service of customs clearance and related works to their clients but both the authorities have not been considered the certificate, therefore, the appellant are entitled to refund of service tax paid to CHA subject to verification of the certificate produced by the appellant. Refund of service tax paid on Transportation of goods by road - HELD THAT - Once the Ld. Commissioner (Appeals) has allowed some portion of freight by Rail then on the same logic, the refund of service tax paid on Transportation of goods by Road should have been also allowed - the appellant is entitled to refund of service tax paid on transportation of goods. Service tax paid on Terminal Handling Service - HELD THAT - The said services are rendered for handling the export containers at the port of exports. These services are rendered within the port area by various service providers and thus the same are in the nature of port service - This issue has been decided by various benches of the Tribunal wherein refund was granted in respect of service tax paid in respect of terminal handling services under the said notification - Reliance can be placed in TRL RICELAND PVT. LTD. VERSUS CCE, DELHI-III 2017 (7) TMI 492 - CESTAT CHANDIGARH . The appellant are entitled to refund of service tax and for determining the quantum of the same, all the matters are remanded back to the adjudicating authority for verification and sanctioning the refund claims filed by the appellant - Appeal allowed by way of remand.

Summary

Issues involved:
The judgment involves appeals against an order passed by the Commissioner (Appeals) of Central Excise, Chandigarh, regarding the refund of service tax paid on transportation of goods and related services.

Refund of service tax on transportation of goods:
The appellant, engaged in the transport of goods by road and export of automobile parts, filed refund claims for service tax paid on export of goods. The appellant had agreements with service providers like M/s Kuehne and Nagel Pvt Ltd (M/s KNL) for arranging export services. The invoices issued by M/s KNL showed evidence of service tax payment. The original authority rejected the refund claim, which was partly upheld by the Commissioner (Appeals). The appellant argued that if refund for rail transportation was allowed, then refund for other services should also be granted.

Refund of service tax on CHA services:
The appellant's claim for refund of service tax paid on Customs House Agent (CHA) services was denied due to lack of invoices. However, certificates from M/s Sunrise Freight and Forwarders Private Ltd. and M/s KNL confirmed the CHA services provided. The appellant contended that these certificates should have been accepted for refund approval.

Refund of service tax on terminal handling service:
The judgment considered terminal handling services as part of port services, citing precedents where refunds were granted for such services. Various Tribunal decisions were referenced to support the appellant's entitlement to refund for terminal handling services. The judgment concluded that the appellant should receive a refund for service tax paid on terminal handling services.

Decision:
After reviewing submissions and evidence, the Member (Judicial) concluded that the appellant was entitled to a refund of service tax paid. The matter was remanded back to the adjudicating authority for verification and sanctioning of the refund claims. All the appeals were allowed by way of remand, with the decision pronounced on 17.10.2023.